West Ham have settled the claim for compensation from former manager Alan Curbishley.
The 52-year-old has been successful in his case of wrongful dismissal, following his resignation from Upton Park in September 2008.
Curbishley guided West Ham to 10th place in his only full season in charge but quit when the club sold players against his wishes.
The League Managers' Association today confirmed Curbishley was entitled to resign because the sales constituted a breach of his contract.
A statement on the LMA official website read: "We can confirm that Alan Curbishley and West Ham have finalised all issues in relation to his departure from the club.
"The Managers' Arbitration Tribunal of the FA Premier League previously, had unanimously upheld Alan Curbishley's claim of wrongful dismissal against West Ham United Football Club.
"He resigned at the beginning of the 2008-09 Season after the club sold Anton Ferdinand and subsequently George McCartney to Sunderland against his wishes.
"The Tribunal upheld Alan Curbishley's right to have ultimate sole authority in relation to the sale and purchase of players, found that the conduct of the club amounted to a fundamental breach of contract and that Alan Curbishley was therefore entitled to resign.
"With Charlton and West Ham, Curbishley has managed almost 800 games. He joined West Ham, in December 2006 and kept them in the Barclays Premier League that season after a dramatic last-day victory at Manchester United."
Curbishley himself is now looking to get back into football management, praising David Sullivan for acting swiftly to conclude the case following his takeover of the Hammers with David Gold last month.
He told www.leaguemanagers.com: "It has taken many months to conclude this case but I am proud of my record at West Ham which included a win ratio of 40%, after initially keeping the club in the Premier League and a 10th place finish in my only full season in charge.
"I would like to thank David Sullivan for acting quickly and concluding the settlement since his arrival at West Ham.
"I would also like to thank the LMA, Mike Morrison of Hill Dickinson and Paul Gilroy QC for their support, hard work and confidence in my case.
"With my managerial record intact, I am now looking forward to the future and getting back into football management."